Investing.com – Deutsche Bank sounded an optimistic tone about entering the aerospace and defense sector in 2025, citing improving production momentum at Boeing (NYSE:) and strong demand from key suppliers.
The bank upgraded RTX to “buy” with a $140 target, citing its strong growth in aerospace and international defense exposure. Boeing, also rated a “buy,” was highlighted for its clean balance sheet and operational momentum after the strike, with potential upside from international orders stimulated by trade policies.
GE Aerospace was named a Top Aftermarket Pick, supported by double-digit aftermarket growth forecasts and positive valuation.
Among the suppliers, Carpenter Technology (NYSE:) and Howmet Aerospace were the best ideas, driven by tight supply and demand dynamics and pricing power in niche markets. CRS has 49% upside potential for its $250 price target, Deutsche Bank (Yatr:) He said.
In defence, the memo maintained a mixed outlook, while acknowledging poor performance compared to geopolitical tensions. However, expectations of accelerating balance sheet growth in 2026 and valuations at the lowest level prompted the bank to be cautiously positive.
rtx, Northrop Grumman (NYSE:) is classified as a preferred defensive stock, while… Lockheed Martin (NYSE:) was downgraded to ‘hold’.
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